There is a whole lot of mystery hovering around Uber, especially around their finances. Uber is some sort of car service and they have tried to evade questions and give ambiguous answers to questions related to rydely
their finances. They have faced intense attacks from lots of parties and they have been forced to answer to different cases regarding their safety, security and employment of it all.In spite of all these, they have managed to come out victorious in every case. They have mitigated any attempt geared at undermining them or any effort that could harm their chances of success.
It is very evident that Uber is a worldwide brand and they have to be reckoned with.
They show no signs of slowing down either, they are still undertaking an impressive progression in their operations and functions as each day passes.
They have transactions that are worth billions regularly, this goes to show that they are a very big brand and have a massive share of the market.
It's just been about six years that Uber was founded and yet their operations have generated massive proceeds for them.
They infiltrated the taxi market with relative ease when they gave the feeling of premium service to their customers. This tactic is mostly attributed to their success, it has been one of the things working for them and it has helped them boast of an enormous market share.Drivers and customers trust Uber and at this moment, there seems to be nothing that can stop them. Uber has also been a model for budding entrepreneurs and they are scrutinising its function intently.
Going with a recently leaked report, Uber's financial records show that they've experienced massive growth.
and they have also incurred substantial losses. The company earning is estimated at about 2 billion dollars.
Reports show that Uber recorded a gross booking worth about 3.63 billion dollars in the first half of 2016,
against the 2.93 billing dollars they had in 2015. This establishes that people are warming up to the service Uber provide.
Let us talk about the net revenue now. There is a difference between net revenue and gross revenue. This is the sum Uber get from their driver's activities before costs are deducted from the revenue generated but after the drivers have been paid their share.
In the first half of 2015, it was pegged at 663.2 million as against the 495.3 million generated in 2014. The excess incentives Uber give to riders and drivers to have their eyes set on the service are having a negative effect on the company's revenue.
The money they use to give promotional fares to riders and those used to give incentives to the drivers is a lot. Their operating costs are also increasing. The general and administrative expense, as shown by the document is also relatively tremendous.
Another category Uber spend so much on are related to marketing and research. A massive sum of 295 million dollars was spent on these in 2015.
They have also recorded great expenditure on the stock-based compensation of the company. The losses recorded year is about 987.3 million dollars in 2015. This kind of expenses could cripple the activities of the average start-ups and probably put them out of business, but this is so not the case with Uber. At the moment, Uber is a very powerful startup and they can compete with these sets of setbacks.
There are different options that could turn out to be favourable that Uber has not yet explored. Many experts believe that Uber can conveniently compete with Google at offering Grade- A technology.There have been talks that Uber is in the early stages of offering additional services like pickup and delivery of physical products, fast transportation of workers and such things.This thing will come to reality because of Uber's effective taxi service dominance it offers to the advantage of their customer structure.
This service they offer gives them the necessary and sufficient cash flow to spend on different products in different markets. However, Uber still have to source for additional funding. Their potentials are quite huge even though their profit margins are not exactly clear. Furthermore, Uber have to cut out their spending. There have also been talks that Uber could go public in 18-24 months and this has got market players slightly uneasy. Nothing has been confirmed yet, we could only wait to see how that goes.
Uber is a global brand. They operate everywhere worldwide. Right now, they operate in more than 60 countries in the universe.In India alone, they have a commanding presence in the taxi industry. In the western world also, they have a powerful hold on people. China is not left out, they have an accord with Did I Chucking which happens to be another superior force in the Chinese market.
A lot of Uber spending is on layers, publicity, marketing, advertising and stuff to squash any attempt at undermining them. The endgame for them here is to become a domineering force in the market they operate. Luckily, they have been able to do this. They are zealous in their operations. It has been announced that they would a billion dollars more in the Indian and Chinese markets.
They have been showing no sign of slowing down. To say that Uber is here to control the activities of the travelling industry won't an exaggeration. For now, they have no rival or competition they should be wary of. But with their spending, one would be forced to wonder how much longer they can rise above the water. There is no answer to this now, we can only wait and see how that goes.